U Days Garments vs. The Adjudication Officer
Facts
The petitioner, U Days Garments, filed a writ petition challenging an order of demand of tax and penalty in Form GST MOV-09, dated 15.07.2026, passed by the Adjudication Officer. The petitioner sought the quashing of this order and the release of ready-made garments. The petitioner contended that the goods were purchased from an unregistered dealer and that the respondent had imposed penalty on 45 bundles, whereas the petitioner owned only 10 bundles. The respondent, represented by the Government Advocate (Taxes), pointed to a document indicating that 13 bags were consigned to the petitioner. The tax period is not specified.
Held
The Court held that under Section 129 of the applicable GST enactments, the owner of the goods may seek their release subject to payment of a penalty of 200% of the value of the goods, unless they are exempted goods. Given the petitioner's assertion of ownership over 10 or 13 bundles, the Court directed that the goods for which a penalty of 200% of their value is paid, after giving credit for amounts already remitted by the petitioner, shall be released. The Court disposed of the writ petition on these terms. The issue of whether the order was illegal or arbitrary in its entirety was implicitly addressed by providing a mechanism for release based on partial ownership and payment of penalty.
Key Issues
1. Whether the impugned order of demand of tax and penalty in Form GST MOV-09, dated 15.07.2026, is illegal and arbitrary, warranting its quashing and the release of the petitioner's goods, as argued by the petitioner? 2. Whether the petitioner is liable for the penalty imposed on 45 bundles when they claim ownership of only 10 bundles, as contended by the petitioner? Petitioner's Arguments: The petitioner argued that the order was illegal and arbitrary and sought the release of their goods. They also asserted that they owned only 10 bundles, not the 45 bundles on which the penalty was imposed. Respondent's Arguments: The respondent, through the Government Advocate (Taxes), referred to a document indicating that 13 bags were consigned to the petitioner. The respondent did not explicitly argue against the petitioner's claims regarding ownership of a lesser number of bundles but highlighted the consignment details.
Sections Cited
Section 129
AI-generated summary — verify with the full judgment below
WP(MD) No. 30314 of 2026 BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT DATED: 16-10-2026 CORAM THE HON'BLE MR JUSTICE SENTHILKUMAR RAMAMOORTHY WP(MD) Nos. 30314 of 2026 and WMP (MD) Nos.23116 & 23117 of 2026 CNR:{HCMD011500102026} U Days Garments, Rep. by its. Proprietor. S.Rajendran, S/o. Subramani, GSTIN 33AAEFU5636LIZW, Katappichapatty, Karuppur Post, Puthanatham (Via), Manapparai Taluk, Trichy District - 621310. ..Petitioner(s)
Vs The Adjudication Officer, Intelligence Wing, Office of the Joint Commissioner (ST) (Int)., Trichy Division, Cantonment, Trichy 620001 ..Respondent(s) PRAYER: Writ Petition filed under Article 226 of the Constitution of India, praying this Court to issue a Writ of Certiorarified Mandamus, to call for the records on the file of the respondent pertaining to the impugned order of demand of tax and penalty in FORM GST MOV-09 in Order No.80/2026-27, dated 15.07.2026 to quash the same as illegal, arbitrary and consequently direct the respondent to release the goods of the petitioner within such time as may be directed by this Honble Court and or pass such further or other orders as this Honble Court may deem __________ https://www.mhc.
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